EFFECT OF INTERNAL CONTROL ON FRAUD PREVENTION IN BANKS IN ABIA STATE (A CASE STUDY OF ECOBANK PLC)

ABSTRACT

This is a gross sectional survey research which aim is  to examine the effect of internal Control as the basis for prevention of fraud in banking system. The aim of this research study is to know internal Control as an effective tool that can prevent fraud practices in the banking system. In the course of this research the problems identified so far is that internal Control system techniques are not universal in the banking operation system. Also, data were collected using the questionnaire, and a sample size of 80 was used. The questionnaires were  issued to respondents using  a sample random sampling and chi• squaretx") and correlation (R2)  were used in testing/analyzing the 3  hypothesis. Hence, the findings of the data received revealed that internal control plays an important role in banking  sector in such a way that  it helps the banking  sector to  provide reasonable assurance regarding the effective and efficiency of its operational activities. Based on the findings it therefore recommends that the banking system should apply the latest audit software that will be able to break all transactions. Also, internal control should be dully motivated to put in their best and comply with operational guidelines and regulations.

TABLE OF CONTENTS ﾿ VI

Title page ﾿

Certification ﾿

Declaration ﾿

Dedication ﾿ iv ﾿

Acknowledgement ﾿ v ﾿

Table  of content ﾿

List of Tables ﾿

Abstract ﾿

CHAPTER  ONE ﾿

INTRODUCTION ﾿

1.1       Background  of the Study ﾿

1.2     Statement  of the Problem ﾿

1.3       Objective  of the Study ﾿

1.4          Statement  of Hypothesis ﾿

1.5       Research  Questions ﾿

1.6       Significance  Of The Study ﾿

1.7       Scope and Limitations   of the Study ﾿

1.8       Brief History  and Background   of Eco Bank ﾿

1.9       Definition  of Terms. ﾿

CHAPTER  TWO ﾿

REVIEW  OF RELATED  LITERATURE ﾿

2.0  Introduction                                                                                                                      11

2.1     Overview  of the Nigerian  Banking  Industry.                                                           11 

2.2 Types of Banking  Products                                                                                         12 

2.3     The Concept oflnternal Control.                                                                    14

2.4     Objectives  oflnternal Control                                                                        15

2.5   Classes oflnternal Control.                                                                            16

2.6    Features oflnternal Control.                                                                          17

2.7    Responsibility for Internal Control.                                                                17

2.8   Management Responsibility of Internal Control System.                              18

2.9    Competent, Trustworthy Personnel with Cleanliness of Authority and Responsibility.          

2.10   Importance oflnternal Control.                                                                      19

CHAPTERTHREE

RESEARCH METHODOLOGY                                                                               28 

3.1 ﾿ Introduction ﾿

3.2 ﾿ Research Design ﾿ 28

3.2 ﾿ Data Collection Method. ﾿

3.3 ﾿ Research Populations. ﾿ 33

3.4 ﾿ Method Of Data Analysis ﾿ 33

CHAPTER FOUR

INTRODUCTION                                                                                                      36

4.1     Presentation and Interpretation Of Data.                                                        36

CHAPTER FIVE

5.0   SUMAMRY CONCLUSION AND RECOMMENDATIONS                     49

5.1      Summary of Findings                                                                                     49

5.2   Recommendation                                                                                            50

5.3     Conclusion.                                                                                                     50

REFERNECES

QUESTIONNAIRE